Saving 'seen as less important'
Author: Sam Gooch
British optimism towards saving has fallen, Nationwide reveals.
People are taking a poorer view towards placing money in savings accounts, new research indicates.
Nationwide, in its latest Saving Index report, reveals a fall in the number of consumers who set money aside last month.
During the course of December, 25 per cent of people stated they were not putting any money aside, a statistic claimed to be "worrying", a rise of one percentage point from November.
Meanwhile, 45 per cent of those questioned are currently saving into UK accounts regularly.
Overall, the Savings Index noted a score of 83, compared to the 87 seen in November, with a particularly dramatic fall seen in the Importance of Saving Index.
This particular sub-index dropped 12 points to 86, although an improvement in the Savings Environment Index was noted.
"December is clearly a busier month for retailers, so there is no surprise that the importance of saving decreased in the run-up to Christmas," Andy Hutchinson, head of savings for Nationwide, states.
Mr Hutchinson points out that the decline in saving activity could also be attributed to the fact "that December 2009 was the last month before VAT increased back up to 17.5 per cent from 15 per cent", giving some people the incentive to make large purchases before the start of 2010.
Adding this Christmas is often an expensive time of year for families, those who are looking towards placing money into ISA accounts and other saving options may be interested in his comments that families should look to start putting away for the future as quickly as possible.
However, Ed Bowsher, head of consumer finance at lovemoney.com, recently claimed that Britons are placing a greater priority on clearing debts owed on credit cards and other forms of borrowing as they take a poor view of the rate of interest attached to accounts.About the Author:
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